Moving Average Crossovers Filtered by RSI and ATR

Summary

This strategy uses crossovers of short and long simple moving averages to generate directional signals, then optionally applies RSI and ATR filters. The stated example uses 9-period and 21-period averages, a 14-period RSI with overbought and oversold levels, and a 14-period ATR with a minimum threshold. Long entries are restricted when RSI is overbought, and short entries when it is oversold; both directions also require ATR to exceed the threshold when that filter is enabled.

Risk controls include a percentage stop, a risk-reward setting for take profit, and position sizing based on account equity and the specified risk percentage. The document gives parameter defaults and settings for a one-hour SOL/USDT backtest, but reports no outcome statistics. It cautions that crossover signals can whipsaw in sideways markets, moving averages lag, and tuning parameters too closely to historical data may overfit. Its claims of stronger signals are not supported by comparative results, so performance would need independent testing.

Key ideas

• Short and long simple moving averages generate the strategy’s directional crossover signals.
• Optional RSI thresholds screen entries in overbought or oversold conditions.
• An optional ATR threshold excludes trades when measured volatility is too low.
• The system sets a percentage stop and risk-reward-based target while sizing positions from equity and risk percentage.
• The document gives example settings but no performance evidence, and warns about whipsaws, lag, and overfitting.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.